ARM Holdings PLC announces 1st Quarter Results

Cambridge, UK -- (MARKET WIRE) -- Apr 29, 2009 --


EMBARGOED until 7.00am BST 29 April 2009

ARM HOLDINGS PLC REPORTS RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH
2009
A conference call discussing these results will be audiocast today
at 08:30 BST at 
www.arm.com/ir

CAMBRIDGE, UK, 29 April 2009-ARM Holdings plc ((LSE: 
ARM); (NASDAQ: 
ARMH)), the world's leading semiconductor intellectual property
supplier, announces its unaudited financial results for the first
quarter ended 31 March 2009


Q1 Financial Highlights (IFRS unless otherwise stated)

  .  Revenues at USD120.9m down 10% year-on-year, (GBP79.9m, up 18%)
  .  Normalised operating margin at 29.5% (IFRS 15.9%)
  .  Normalised PBT at GBP23.9m, up 12% (IFRS GBP13.1m, up 9%)
  .  Normalised EPS at 1.38p, up 18% (IFRS 0.77p, up 54%) 
  .  GBP13.5m cash generated in the quarter
  .  Reiterating FY 2009 guidance


Q1 2009 - Financial Summary
                                Normalised*              IFRS
GBPM
                                Q1 2009 Q1 2008 % Change Q1 2009 Q1 2008
Revenue                         79.9    67.9    18%      79.9    67.9
Profit before tax               23.9    21.3    12%      13.1    12.0
Operating margin                29.5%   30.6%            15.9%   16.8%
Earnings per share (pence)      1.38    1.17    18%      0.77    0.50
Net cash generation**           13.5    13.7
Effective revenue fx rate       1.51    1.98
(USD/GBP) 


Outlook
We reiterate our previous guidance for 2009; that we expect group
dollar revenues for the full-year to be at least in line with market
expectations, unless industry conditions deteriorate to a greater
extent than is generally anticipated. 

Overall semiconductor industry activity continued to slow in Q1 2009,
and whilst there are early signs of improving visibility in some
sectors, the near term remains uncertain. However, with demand for
ARM's portfolio of products remaining robust, we believe that the
Company is positioned to continue to perform resiliently in this
difficult trading environment. 


Warren East, Chief Executive Officer, said:"ARM has made an encouraging start to 2009. Leading semiconductor and
OEM companies are continuing to utilise ARM technology, creating
healthy demand for our latest processors and physical IP products.

ARM has outperformed the semiconductor industry in the first quarter.
ARM's Q1 dollar revenues are 10% lower than a year ago whilst overall
industry revenues have declined by about 30% over the same period(1).
This outperformance, combined with careful management of
costs and the strengthening of the dollar against sterling, has given
rise to year-on-year earnings growth of 18% and further robust net cash
generation in the first quarter."
(1)Source: Gartner, March 2009 
Q1 Operational Highlights
.   Processor Division (PD): Strong licensing base driving
    royalty momentum
       .   Base of licenses increased to more than 600 with 17
           additional processor licenses signed in Q1
               o   Includes 5 licenses for Mali graphics processor and
                   4 Cortex-M licenses for microcontrollers
       .   Mix of higher value chip shipments grows average royalty rate
           to 6.0c
               o   ARM11-based chip shipments increase 50% year on
                   year; now more than 5% of total shipments
.   Physical IP Division (PIPD): Licensing advanced technology nodes to
    IDMs and foundries
       .   12 licenses for physical IP in Q1, 6 at advanced nodes,
           including 32nm
       .   First delivery of an ARM processor manufactured on ARM's 32nm
           physical IP

Q1 2009 - Revenue Analysis
                    Revenue (USDm)***          Revenue (GBPm)
                    Q1 2009 Q1 2008 % Change Q1 2009 Q1 2008 % Change
PD
Licensing           31.9    36.3    -12%     19.6    18.3    8%
Royalties           50.3    54.8    -8%      35.1    27.8    26%
Total PD            82.2    91.1    -10%     54.7    46.1    19%
PIPD
Licensing           8.8     11.8    -26%     5.4     5.9     -9%
Royalties(1)        8.0     9.1     -12%     5.5     4.7     20%
Total PIPD          16.8    20.9    -19%     10.9    10.6    4%
Development Systems 14.6    14.2    3%       10.0    7.1     39%
Services            7.3     8.1     -10%     4.3     4.1     5%
Total Revenue       120.9   134.3   -10%     79.9    67.9    18%

(1)Includes catch-up royalties in Q1 2009 of USD1.6m (GBP1.0m) and in Q1
2008 of USD0.8m (GBP0.4m).

*    Normalised figures are based on IFRS, adjusted for acquisition-
     related, share-based compensation and restructuring charges and
     profit on disposal and impairment of available-for-sale
     investments. For reconciliation of IFRS measures to normalised non-
     IFRS measures detailed in this document,
     see notes 4.1 to 4.20.
**   Before dividends and share buybacks, net cash flows from share 
     option exercises, disposals of available-for-sale investments and
     acquisition consideration - see notes 4.11 to 4.14.
***  Dollar revenues are based on the group's actual dollar invoicing, 
     where applicable, and using the rate of exchange applicable on the
     date of the transaction for invoicing in currencies other than
     dollars.
     Approximately 95% of invoicing is in dollars.
**** Each American Depositary Share (ADS) represents three shares.



CONTACTS:    

Sarah West/Pavla Shaw       Tim Score/Ian Thornton  
Brunswick                   ARM Holdings plc  
+44 (0)207 404 5959         +44 (0)1628 427800


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